Get the app today! Download iPhone App Download Android App

Amazon's $1bn Investment In India No Big Favour: Minister

Published on Jan 16 2020 3:00 PM in Technology tagged: Trending Posts / India / Amazon / Jeff Bezos

Amazon's $1bn Investment In India No Big Favour: Minister

Amazon hasn't done India any big favours by investing $1 billion in the country, its trade minister said on Thursday, laying bare the tensions with the US online retail giant during a visit by its CEO Jeff Bezos.

Amazon and Walmart's Flipkart are facing mounting criticism from India's brick-and-mortar retailers, which accuse the US giants of violating Indian law by racking up billions of dollars of losses to fund deep discounts and discriminating against small sellers. The companies deny the allegations.

"They may have put in a billion dollars but then if they make a loss of a billion dollars every year then they jolly well have to finance that billion dollars," Indian trade minister, Piyush Goyal, told a security conference in New Delhi.

"So it's not as if they are doing a great favour to India when they invest a billion dollars."

Investment

Bezos, who is currently in India, said on Wednesday Amazon would invest $1 billion to bring small businesses online in the country, seen as part of the company's efforts to dispel criticism.

Ahead of Bezos' visit, the Competition Commission of India launched a probe into Amazon and Flipkart to look at allegations of deep discounts and whether the companies discriminate against small sellers.

Goyal said the allegations were "an area of concern for every Indian".

News by ReutersClick subscribe to sign up to ESM: European Supermarket Magazine.

Share on Facebook Share on Twitter Share on LinkedIn Share via Email